The Coronavirus Is Unique But Market Corrections Are Not

As you are likely aware, the Coronavirus is having a meaningful impact on the capital markets. The fear of a global economic recession has caused a correction in the equity market (loss of 10% of more) and an increased demand for safer assets, such as fixed income securities.

Year to date equity markets are down approximately 4% but have fallen more than 10% from their recent all-time highs. Intermediate term bonds have appreciated by approximately 3% since the beginning of 2020.

The short and long-term impact of the Coronavirus is unknown, and we expect volatility to remain high in the markets. We continue to recommend clients remain dedicated to their long-term strategy while we seek rebalancing opportunities. That means that during this time of uncertainty we may be purchasing equities.

It is understandable to feel uncertainty in times of market volatility. The concern over Coronavirus is unique, but market corrections are not. Past market corrections, and financial research, supports that attempting to time the market can result in missed opportunities.

Recent Posts
Search By Tags

TruNorth Capital Management, LLC (TruNorth) is an investment advisor registered and regulated by the Securities and Exchange Commission (SEC). All clients and potential clients have access to important information about our business methods, fees, professional qualifications and all other pertinent business information. By using this website, you accept our Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss.

Regarding the interaction TruNorth or its representatives may have with clients and/or potential clients in ERISA-covered plans, including SEPs, SIMPLEs and non-ERISA retirement plans that are subject to Section 4975 of the IRS Code, including IRAs, Keogh plans and Solo 401(k)s (collectively "retirement plans"), TruNorth may provide non-discretionary investment advice to a specific investor, recommending or suggesting the acquisition or disposing of securities or other investment property in a retirement plan and/or recommending a rollover from a retirement plan to another. During the course of this interaction, TruNorth meets their requirements of a "level-fee fiduciary" and adheres to the Impartial Conduct Standards that require TruNorth to a) provide advice that is in the client's best interest, b) receive only reasonable compensation for its advice and; c) not make materially misleading statements. 

© 2017 TruNorth Capital Management, LLC